Revenue and Profitability Trends
For the year ended 31 March 2025, Emmbi Industries reported consolidated net sales of ₹404.18 crores, with no additional operating income. The company’s total expenditure, excluding depreciation, stood at ₹365.97 crores, resulting in an operating profit (PBDIT) of ₹38.41 crores. This translates to an operating profit margin of approximately 9.45%, signalling effective cost control relative to sales. However, the gross profit margin was more modest at 5.04%, reflecting the impact of raw material costs and other expenses.
Interest expenses remained significant at ₹18.04 crores, which, combined with depreciation of ₹11.77 crores, reduced the profit before tax to ₹8.60 crores. After accounting for taxes of ₹2.37 crores, the company posted a consolidated net profit of ₹6.23 crores. This resulted in a profit after tax margin of 1.54%, indicating a narrow bottom-line margin despite healthy top-line figures. Earnings per share (EPS) for the period was ₹3.37, with a diluted EPS of ₹3.24, reflecting stable earnings attributable to shareholders.
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Balance Sheet and Asset Base Evolution
Examining the standalone balance sheet over the past six years reveals a steady increase in shareholder funds, rising from ₹114.96 crores in March 2019 to ₹170.12 crores by March 2024. This growth is supported by a consistent accumulation of reserves, which climbed from ₹97.27 crores to ₹152.44 crores over the same period. The company’s equity capital has remained stable at ₹17.69 crores, indicating no recent equity dilution.
On the liabilities side, total debt has increased from ₹96.39 crores in 2019 to ₹156.39 crores in 2024, reflecting a rising reliance on borrowings to support expansion or working capital needs. Long-term borrowings have fluctuated but remained substantial, while short-term borrowings have shown a steady upward trend, reaching ₹113.94 crores in March 2024. Total liabilities correspondingly rose from ₹270.26 crores to ₹388.40 crores during this period.
Asset growth has kept pace with liabilities, with total assets increasing from ₹270.26 crores in 2019 to ₹388.40 crores in 2024. The net block of fixed assets expanded from ₹117.41 crores to ₹176.31 crores, indicating ongoing capital investment. Current assets also grew, reaching ₹206.71 crores in 2024, supported by rising inventories and sundry debtors, which suggests increased operational scale.
Cash Flow and Operational Efficiency
Cash flow analysis over recent years shows that Emmbi Industries has maintained positive cash flow from operating activities, with ₹28 crores generated in the fiscal year ending March 2024. This is a decline from ₹38 crores in the previous year but remains a healthy indicator of operational cash generation. Investing activities consistently reflect cash outflows, averaging around ₹20 crores annually, consistent with capital expenditure and asset growth.
Financing activities have generally resulted in net cash outflows, indicating debt repayments or dividend payments, except for a positive inflow in 2021. The company’s closing cash and cash equivalents have remained low but stable, around ₹1 crore in recent years, underscoring a lean cash position.
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Summary of Historical Performance
Overall, Emmbi Industries has shown a pattern of steady growth in revenue and shareholder equity over the past several years, supported by consistent capital investment and operational cash flow. Profitability margins remain modest, with net profit margins under 2%, reflecting the capital-intensive nature of the business and significant interest expenses. The company’s increasing debt levels warrant attention, although they appear to be managed alongside asset growth and reserve accumulation.
Investors analysing Emmbi Industries should consider its stable revenue base and improving book value per share, which rose from ₹64.99 in 2019 to ₹96.17 in 2024, as indicators of long-term value creation. However, the relatively thin profit margins and rising leverage suggest a need for cautious evaluation of risk and return dynamics in the context of sector and market conditions.
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